Meadow Foods has announced that it will be increasing the price it pays for milk by 2ppl.
Prices will rise by 1ppl in July with a further 1ppl increase in August. This takes their standard A litre milk price to 19ppl and the dairy group is forecasting improved prices for the B price.
The price increase will be welcome news for dairy farmers after a long period of pressure on prices. Prices have started to rise over the past few weeks, partly due to falling milk supplies.
Simon Chantler, Executive Chairman at Meadow Foods, said: “We are starting to see the green shoots of recovery in the price we are able to pay for our milk and wanted to pass this on to our producers as soon as it was possible.
“Although there is still some way to go before the pressure is lifted from producers, we feel that the slowdown in EU milk production over the flush period and a general tightening of supply are offering a better market outlook.
“These developments are the most positive we have seen for a number of months and this has led us to adopt a more optimistic position for the recovery of milk prices in the medium term.”